K.S. Rajan (12
Aug 2011)"Negligence
of financial management by USA BY David Dolan"

When things went south in 2008 due to the recklessness of our
major financial institutions and lack of sufficient oversight
from the White House and Congress, the decision was taken to
save the day by printing up masses of fresh greenbacks to throw
at the problem. When going further into debt did not work
(surprise!), the next president, Obama, did the same thing on an
even grander scale, but not before ramming through yet another
huge entitlement program that we simply could not afford, as
many economists warned.

I've long thought that an increasingly decadent United States –
seemingly enjoying a non-stop party while largely ignoring the
deep debt hole its leaders were digging – would not remain
solvent in the end, with all the calamitous consequences for
America and the world that implies. The day of reckoning seems
to be drawing very near, despite the fact that we have an
excellent, educated work force, leading high-tech industries,
much of the world's top corporations, etc. Look for the ugly
violence gripping London and other U.K. cities to come to
America as joblessness spikes up once again, leaving despairing
inner-city young people with nothing better to do.

I expect the dollar will be dumped in the end by our main
foreign funders, China, Japan, Germany and Saudi Arabia (doesn't
that look like America's enemy list from not so long ago?), but
not in favor of the Chinese yuan, as the providential leaders in
Beijing probably hope for. No, it will have to be the euro,
despite the current severe financial problems in several of the
European Union's major partner states. In the end, the currency
still has a solid core in Germany, and an outside backer in
relatively solvent EU member country Great Britain. More than
that, there is no realistic alternative currency to choose from.

The successive American governments and Congresses have not
stayed even close to our actual national means for many decades,
and the time to pay the piper has apparently arrived.